Issuers of prime non-agency MBS are completing deals with mortgages originated after the market volatility of March while expanded-credit MBS continue to be stocked with older loans.
Prime jumbo MBS production posted the biggest increase of any sector, rising 177% from the second quarter, while ECM securitization was up 14% in the third quarter. (Includes three data charts.)
Sterling Bank has offered to buy back all non-QMs after uncovering various problems with its lending program. Between May and July, the bank repurchased loans from five MBS, taking a loss.